The Australian Medical Association (AMA) has issued a resounding call to the Australian Prudential Regulation Authority (APRA), urging the regulator to abandon proposed changes to the quarterly private health insurance statistics publications and maintain the status quo.
In a submission made to APRA as part of its consultation process regarding enhancements to quarterly insurance reporting across various sectors, the AMA focused its commentary solely on the realm of private health insurance quarterly reporting.
Expressing surprise and disappointment, the AMA criticized APRA’s lack of clear and timely communication with stakeholders regarding the rationale behind the proposed alterations to the quarterly private health insurance statistics publications for the December 2023 and March 2024 quarters.
The AMA’s submission highlighted a fundamental point of contention: while acknowledging that adjustments to the capital framework for private health insurers impacted the data available for quarterly publications, the association expressed dismay over APRA’s current framing of proposed changes as aiming to better align with stakeholder needs. The AMA underscored that the specific reporting modifications APRA is suggesting in this consultation bear no relation to the changes in the capital framework for private health insurers.
Moreover, the AMA argued that the proposed changes would diminish the usefulness and accessibility of these quarterly reports for stakeholders. While the alterations may offer the same raw data points on private health insurers’ activities, they would significantly increase the burden on stakeholders, particularly small non-profit organizations lacking substantial resources.
Central to the AMA’s concerns is APRA’s proposal to eliminate the summary publication “Quarterly private health insurance statistics,” which previously consolidated key data from various other reports, facilitating easy tracking of changes over time. The AMA emphasized the importance of this summary publication, especially for non-profit stakeholders striving to monitor developments in the sector.
Critically, APRA’s rationale for removing the summary publication, as outlined in its consultation paper, is to align the format of quarterly reporting for private health insurers with that of life and general insurers. However, the AMA questioned the relevance of this alignment, emphasizing the unique nature and broader stakeholder interest in private health insurance compared to other insurance sectors.
Given the substantial government subsidy allocated to private health insurance annually, the AMA asserted that robust and transparent reporting by APRA on private health insurers is not only reasonable but imperative.
In light of these concerns, the AMA urges APRA to reconsider its proposed changes and uphold the current format of quarterly private health insurance statistics publications, ensuring continued transparency and accessibility for stakeholders in the health sector.
